LAWFUEL – The Legal Newswire – NEW YORK, Jan. 10, 2008 – Roy Jacobs & Associates announces an action has been filed in the United States District Court for the Southern District of New York which includes claims against Security Capital Assurance Ltd. (“Security Capital” or the “Company”) (NYSE:SCA) and others, on behalf of purchasers of Security Capital shares in the June 6, 2007 public offering (“Offering”). 9.6 million shares were sold at $31 per share, raising over $300 million.
You may join this action by calling toll free, 1-800-347-1236, or by
contacting counsel by e-mail at: [email protected]
The Complaint alleges inter alia that almost immediately after the
Offering, Security Capital’s share price began to fall, and, by
November 2007 it was under $10 per share. It was only after the Company
had completed the Offering that the Company began to reveal previously
undisclosed material business problems. On July 23, 2007, Security
Capital reported net income of $25.9 million, or $0.40 per share for
the second quarter of 2007, as compared to $36.4 million, or $0.79 per
share, reported in the second quarter of 2006. The quarterly decline in
net income was principally due to a decline in refunding activity, and
a significant increase in losses on derivative instruments. On this
news, the Company’s shares declined $4.38 per share, or 15.19 percent,
to close on July 24, 2007 at $24.26 per share, on unusually heavy
Subsequently, on October 25, 2007, the Company reported its third
quarter 2007 financial and operational results. For the quarter, the
Company reported a net loss of $89.9 million, or $1.40 per share,
compared to net income of $28.4 million, or $0.49 per share, reported
in the third quarter of 2006. This quarterly loss was due to a $143
million loss on its derivative instruments. On this news, the Company’s
shares declined an additional $1.20 per share, or 8.3 percent, to close
on October 25, 2007 at $13.25 per share, on heavy trading volume.
Security Capital’s shares have continued to decline.
If you purchased Security Capital stock in the Offering, you may
qualify to serve as a Lead Plaintiff on behalf of the Class. You are
not required to have sold your Security Capital stock in order to claim
damages, or to serve in this role. All motions for appointment as Lead
Plaintiff must be filed with the Court by February 5, 2008.
Purchasers of shares issued in the Offering have claims against the
Company and others and do not have to prove fraud to recover. If you
purchased Security Capital shares pursuant to the Offering which was
effective on June 6, 2007 and are interested in discussing your rights
free of charge, please contact Roy L. Jacobs. Mr. Jacobs will speak
with you at no cost or obligation.
CONTACT: Roy Jacobs & Associates
Roy L. Jacobs, Esq.